Contracts

Under a Delaware real estate contract, what is 'specific performance'?

AA penalty clause requiring a specific payment if the buyer defaults
BA court remedy compelling a party to complete a real estate transaction as agreed in the contract✓ Correct
CThe seller's obligation to make specific repairs before closing
DA clause requiring the agent to perform specific marketing activities

Explanation

Specific performance is an equitable court remedy that compels a party to fulfill their contractual obligation — typically used in real estate because each parcel of land is considered unique. A buyer or seller may sue for specific performance when the other party breaches the purchase agreement.

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